Reasons Why People Sell Houses

November 28, 2011

Our society can be transitory. People purchase a home with a plan that they will be living there for many years to come. In the past, people lived in their homes their entire adult lives and passed the home to their children.

According to the Toronto Real Estate Board, realtors in the Greater Toronto area reported 7,642 sales during October 2011.

Those 7000 plus homeowners all had a reason to move and sell. Here are some of the reasons:

Relocation. With low employment rates, people need to go where the jobs are. Companies also relocate employees to different areas. Sometimes a commute becomes too much and people decide to move closer to work.

Outgrowing a home. Couples may purchase a starter home that is perfect for them. Once they start a family, they feel the squeeze. More bedrooms, a family room, and a larger yard become desirous.

Downsizing. As couples become “empty nesters” they may find that they no longer need a large home. Baby boomers are selling their homes and moving to condominiums.

Marriage and divorce. Combining households, or the more tragic breaking up of a home are common reasons to sell a house.

Financial problems. Sometimes people buy more house than they can afford. During these recessionary times, people lose jobs or have to take pay cuts.

Health problems. When someone becomes seriously ill or disabled, they can no longer maintain their home, or afford to pay their mortgage.

Retirement and lifestyle changes. Some people decide to pack it in, sell the house and travel, or move to a retirement home. As the baby boomers age, this will become more common.

Flipping homes. Some people prefer to buy houses that need renovations, live in the house while they fix it up, then sell it for a profit and buy a new one.

Neighborhood problems. Bad neighbours can make someone’s life hell. Sometimes moving is the only solution. A poor neighborhood increases the likelihood a homeowner will sell. If there is a high crime rate or break-ins, that can provoke someone to move to a safer neighborhood.

High maintenance costs. An older home that is in need of significant upgrades, such as new wiring, a new furnace, or roof, may prompt some people to sell, rather than invest money and time in renovations.

Upgrading. Someone wins the lottery, gets an inheritance, or a promotion and decides the time to purchase their dream home is now.